Watsco, Inc. (WSO-B) Cash Flow Statement
Where WSO-B’s cash came from and went, 2025
December 31, 2025 · U.S. dollars- Cash from operations
- $569.6M −26.3% vs 2024
- Capital expenditures
- $34.5M 0.5% of revenue
- Free cash flow
- $535.1M 7.4% margin
- Returned to shareholders
- $477.4M 89% of free cash flow
- Change in cash
- −$93.0M cash at year-end $433.3M
Drawn to scale: where the cash came from and how it was used. Hover for values.
WSO-B operating cash flow, capex and free cash flow
WSO-B cash flow trends, 2016–2025
| Metric | Trend | Then | Latest | Change |
|---|---|---|---|---|
| Operating cash flow | $277.8M2016 | $569.6M2025 | +8.3%/yr | |
| Capital expenditures | $43.6M2016 | $34.5M2025 | −2.5%/yr | |
| Free cash flow | $238.2M2016 | $535.1M2025 | +9.4%/yr | |
| Free cash flow margin | 5.6%2016 | 7.4%2025 | +1.7 pts | |
| Operating cash flow / net income | 1.182016 | 1.232025 | +0.05 | |
| Stock-based compensation | $12.3M2016 | $35.3M2025 | +12.4%/yr | |
| Dividends paid | $127.6M2016 | $473.8M2025 | +15.7%/yr | |
| Share buybacks (net) | $4.0M2016 | $3.7M2025 | −0.9%/yr | |
| Capex / revenue | 1.0%2016 | 0.5%2025 | −0.6 pts |
Change is the average annual growth (CAGR) or the difference between the first and latest year.
WSO-B cash flow by activity
WSO-B net income vs operating cash flow
Operating cash flow above net income usually means earnings are backed by cash (depreciation and stock-based pay are non-cash expenses).
WSO-B cash flow statement
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating activities | ||||||||||
| Net income | $464.2M | $635.7M | $634.1M | $703.7M | $498.7M | $323.2M | $295.8M | $296.5M | $257.3M | $236.0M |
| Depreciation & amortization | $43.8M | $40.8M | $35.1M | $31.7M | $28.1M | $25.9M | $24.5M | $22.1M | $22.0M | $20.1M |
| Stock-based compensation | $35.3M | $35.0M | $30.0M | $28.8M | $25.4M | $22.1M | $17.0M | $15.5M | $13.3M | $12.3M |
| Change in working capital | −$102.1M | $78.2M | −$119.8M | −$196.7M | −$201.7M | $167.1M | −$207,000 | −$168.2M | $19.3M | $1.0M |
| Other non-cash items | $128.4M | −$16.7M | −$17.5M | $4.5M | −$968,000 | −$4.0M | −$1.3M | $4.6M | −$10.1M | $8.4M |
| Cash from operating activities | $569.6M | $773.1M | $562.0M | $572.0M | $349.6M | $534.4M | $335.8M | $170.6M | $301.8M | $277.8M |
| Investing activities | ||||||||||
| Capital expenditures | −$34.5M | −$30.1M | −$35.5M | −$33.8M | −$24.1M | −$16.3M | −$16.4M | −$17.2M | −$17.9M | −$43.6M |
| Investments (net) | −$44.8M | −$290.7M | −$35.5M | −$33.8M | −$148.6M | −$16.3M | −$4.9M | −$3.8M | −$63.6M | −$42.8M |
| Acquisitions & other investing | −$18.7M | $30.1M | $29.6M | $33.8M | $24.1M | $16.3M | −$59.7M | −$5.4M | $168,000 | $43.6M |
| Cash from investing activities | −$98.1M | −$290.7M | −$41.3M | −$33.8M | −$148.6M | −$16.3M | −$81.0M | −$26.3M | −$81.3M | −$42.8M |
| Financing activities | ||||||||||
| Dividends paid | −$473.8M | −$423.5M | −$382.6M | −$332.4M | −$294.5M | −$265.7M | −$241.4M | −$209.2M | −$164.1M | −$127.6M |
| Share repurchases & issuance (net) | −$3.7M | −$39.7M | −$2.8M | −$87.1M | −$1.1M | −$2.3M | −$1.5M | −$3.8M | −$4.7M | −$4.0M |
| Net borrowing (repayment) | −$6.0M | −$21.4M | −$45.9M | −$35.6M | $89.0M | −$157.3M | $20.5M | $113.4M | −$213.5M | −$10.0M |
| Shares issued | $0 | $281.8M | $35.6M | $20.4M | $21.0M | $19.3M | $13.3M | $6.6M | $0 | $0 |
| Other financing | −$84.7M | $44.3M | −$64.3M | −$69.2M | −$43.0M | −$42.4M | −$54.9M | −$46.6M | $180.2M | −$76.3M |
| Cash from financing activities | −$568.1M | −$158.5M | −$460.1M | −$504.0M | −$228.6M | −$448.5M | −$264.0M | −$139.6M | −$202.1M | −$217.9M |
| Summary | ||||||||||
| Net change in cash | −$93.0M | $316.2M | $62.6M | $29.2M | −$27.8M | $71.6M | −$8.4M | $2.4M | $24.5M | $20.8M |
| Cash at end of period | $433.3M | $526.3M | $210.1M | $147.5M | $118.3M | $146.1M | $74.5M | $82.9M | $80.5M | $56.0M |
| Free cash flow | $535.1M | $743.0M | $526.5M | $538.2M | $325.5M | $518.0M | $319.3M | $153.4M | $288.6M | $238.2M |
| Free cash flow margin | 7.4% | 9.8% | 7.2% | 7.4% | 5.2% | 10.2% | 6.7% | 3.4% | 6.6% | 5.6% |
| Capex / revenue | 0.5% | 0.4% | 0.5% | 0.5% | 0.4% | 0.3% | 0.3% | 0.4% | 0.4% | 1.0% |
| Operating cash flow / net income | 1.23 | 1.22 | 0.89 | 0.81 | 0.70 | 1.65 | 1.14 | 0.58 | 1.17 | 1.18 |
| Jun '26 | Mar '26 | Dec '25 | Sep '25 | Jun '25 | Mar '25 | Dec '24 | Sep '24 | Jun '24 | Mar '24 | Dec '23 | Sep '23 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating activities | ||||||||||||
| Net income | $205.2M | $79.1M | $67.1M | $189.2M | $216.8M | $94.5M | $115.2M | $201.6M | $214.7M | $104.3M | $97.7M | $200.6M |
| Depreciation & amortization | $10.9M | $11.0M | $11.1M | $11.0M | $10.9M | $10.8M | $10.5M | $10.4M | $10.0M | $9.9M | $9.7M | −$16.6M |
| Stock-based compensation | $8.6M | $8.1M | $8.7M | $9.1M | $8.8M | $8.8M | $10.0M | $8.5M | $8.4M | $8.1M | $9.2M | $7.3M |
| Change in working capital | −$70.0M | −$137.5M | $282.9M | $535.9M | −$238.9M | −$297.0M | $252.0M | $20.8M | −$170.6M | −$23.9M | $196.7M | $141.0M |
| Other non-cash items | −$157.2M | $20.4M | $30.1M | −$390.3M | −$5.0M | $5.2M | −$8.7M | −$8.6M | −$4.7M | $5.4M | −$14.7M | $20.3M |
| Cash from operating activities | −$2.5M | −$18.9M | $399.8M | $354.9M | −$7.4M | −$177.6M | $378.9M | $232.8M | $57.7M | $103.7M | $298.6M | $352.5M |
| Investing activities | ||||||||||||
| Capital expenditures | −$8.9M | −$7.0M | −$10.8M | −$8.5M | −$6.8M | −$7.5M | −$8.0M | −$9.8M | −$6.4M | −$5.8M | −$10.0M | −$8.4M |
| Investments (net) | $100.0M | $100.0M | −$100.5M | −$208.8M | −$22.3M | $244.6M | −$8.0M | −$65.4M | −$6.3M | −$211.0M | −$13.3M | −$10.5M |
| Acquisitions & other investing | $7.6M | $100,000 | −$265,000 | $8.5M | $6.8M | $7.5M | $8.0M | $9.8M | $6.4M | $5.8M | $10.0M | $8.4M |
| Cash from investing activities | $98.6M | $93.1M | −$111.6M | −$208.8M | −$22.3M | $244.6M | −$8.0M | −$65.4M | −$6.3M | −$211.0M | −$13.3M | −$10.5M |
| Financing activities | ||||||||||||
| Dividends paid | −$134.1M | −$121.8M | −$121.7M | −$121.6M | −$121.5M | −$109.0M | −$109.0M | −$108.9M | −$108.8M | −$96.8M | −$96.5M | −$95.7M |
| Share repurchases & issuance (net) | $590,000 | −$590,000 | $0 | −$3.7M | $0 | $0 | −$36.8M | −$1.6M | −$767,000 | −$442,000 | −$189,000 | −$385,000 |
| Net borrowing (repayment) | −$1.2M | −$1.2M | −$1.4M | −$1.4M | −$1.5M | −$1.6M | −$1.6M | −$1.5M | — | — | — | −$235.5M |
| Shares issued | $0 | $5.8M | $0 | $0 | $0 | $11.0M | $0 | $0 | $0 | $292.4M | $29.1M | $0 |
| Other financing | $11.3M | $3.9M | −$57.2M | $13.1M | $10.4M | −$62.1M | $14.0M | $13.2M | $5.0M | −$16.8M | −$184.8M | $3.5M |
| Cash from financing activities | −$123.4M | −$114.0M | −$180.3M | −$113.6M | −$112.6M | −$161.7M | −$133.5M | −$98.9M | −$104.6M | $178.4M | −$252.4M | −$328.1M |
| Summary | ||||||||||||
| Net change in cash | −$28.5M | −$40.6M | $108.9M | $31.4M | −$138.8M | −$94.4M | −$23.8M | $125.2M | $146.0M | $68.8M | $35.1M | $12.5M |
| Cash at end of period | $364.2M | $392.7M | $433.3M | $324.3M | $293.0M | $431.8M | $526.3M | $550.0M | $424.9M | $278.9M | $210.1M | $175.0M |
| Free cash flow | −$11.5M | −$25.9M | $388.9M | $346.4M | −$14.3M | −$185.2M | $370.9M | $223.0M | $51.3M | $97.9M | $288.6M | $344.1M |
| Free cash flow margin | −0.5% | −1.7% | 24.6% | 16.8% | −0.7% | −12.1% | 21.1% | 10.3% | 2.4% | 6.3% | 18.0% | 16.2% |
| Capex / revenue | 0.4% | 0.5% | 0.7% | 0.4% | 0.3% | 0.5% | 0.5% | 0.5% | 0.3% | 0.4% | 0.6% | 0.4% |
| Operating cash flow / net income | −0.01 | −0.24 | 5.96 | 1.88 | −0.03 | −1.88 | 3.29 | 1.15 | 0.27 | 0.99 | 3.06 | 1.76 |
Negative numbers are cash paid out. Quarterly columns are labeled by the month the quarter ended. Figures in U.S. dollars as reported; data from EODHD.
WSO-B cash generation
In fiscal 2025 (ended December 31, 2025), Watsco generated $569.6 million of cash from operations (down 26.3%) and spent $34.5 million on capital expenditures, leaving free cash flow of $535.1 million, 7.4% of revenue. It returned $477.4 million to shareholders through dividends ($473.8 million) and net share buybacks ($3.7 million). Cash and equivalents fell by $93.0 million over the year.
Related: WSO-B income statement, WSO-B balance sheet, WSO-B dividend history. See the WSO-B stock overview for the latest quote and news.
WSO-B cash flow FAQ
What is Watsco's free cash flow?
Watsco's free cash flow was $535.1 million in fiscal 2025: $569.6 million of operating cash flow minus $34.5 million of capital expenditures It was $743.0 million a year earlier..
How much cash does Watsco generate from operations?
Watsco generated $569.6 million of cash from operating activities in fiscal 2025, 1.23 times its net income of $464.2 million.
How much does Watsco spend on capital expenditures?
Watsco spent $34.5 million on capital expenditures in fiscal 2025, 0.5% of revenue, compared with $30.1 million the year before.
How much stock does Watsco buy back?
Watsco spent $3.7 million on net share repurchases in fiscal 2025.
How much does Watsco pay in dividends?
Watsco paid $473.8 million in dividends in fiscal 2025, 88.5% of free cash flow.